Security Properties Sells Portland-Area Community for $124M
The joint venture sold the 347-unit community in Lake Oswego, Ore., after renovating most of the units in 2019.
One Jefferson. Image courtesy of Nick Grier
Security Properties has sold its 347-unit community in Lake Oswego, Ore., after recently completing a comprehensive renovation program on most of the units. An undisclosed buyer purchased One Jefferson for $124 million. CBRE’s Josh McDonald, Joe Nydahl and Phil Oester represented the seller.
The low-density, garden-style community was built in 1986 and offers studio, one-, two-, three-, four- and five-bedroom floorplans. Units average 1,049 square feet and are spread across 58 three-story buildings.
The Security Properties joint venture completed significant renovations to approximately 86 percent of the units in 2019. The renovations added stainless steel appliances, granite countertops, a tile backsplash, vinyl-plank flooring in wet areas and updated fixtures to the units. The community’s amenities include a pool, spa, a dog park, a fitness center, an outdoor lounge, a sundeck, picnic areas and 644 parking spaces. According to CBRE, the community was 96.8 percent leased and 93.6 percent occupied at closing.
Located on a 20.5-acre site at 1 Jefferson Parkway, One Jefferson is a few minutes away from Interstate 5, and highways 217 99W, connecting residents to downtown Portland in about 15 minutes. One Jefferson’s location in Portland’s Southwest submarket also means it’s a short commute to the Silicon Forest’s tech employment hubs.
Staying active in the Pacific Northwest
McDonald, a senior vice president at CBRE, said in prepared remarks that Lake Oswego is a sought-after market for multifamily investors, but one with a significant barrier to entry. McDonald added in his prepared remarks that only one commercial land transaction has been sold since 2017 and most of the land is zoned for or occupied by single-family homes.
For Security Properties, the sale of One Jefferson adds to its more than 63,300 residential units sold across 432 assets, totaling more than $3.4 billion in value. The company also recently sold Insignia Apartments, a 162-unit multifamily community in Bremerton, Wash., earlier this year. However, Security Properties is still looking to acquire more properties in the Pacific Northwest, as indicated by its acquisition of Martingale, a 240-unit community in Lacey, Wash. in December.
